How does velocity banking work 

The properties I have been getting from my realtors are getting under contract at a velocity that is making my head spin!

As @Ashish Acharya said most experienced investors do both a mixture of buy and hold and flips because theres synergy in the tax, income, velocity and scale that each type of investing brings to the table.It sounds like you've already closed this sale. 

I recently began reading up on the VELOCITY BANKING strategy with a credit line and I'm very interested in how well it really works.  

. , @Jason Dillard is spot on with regard to eligibility for 1031 and the way to mitigate.If your goal is to be a fixer flipper or a wholesaler as he is and can generate the velocity needed then he's probably right in his assessment that you can make more cash flow flipping or wholesaling (although the net tax difference dissipates most of that differential). 

I say potential because you don't even have to be under contract during that time but it's certainly wise given the velocity these days.  

You won’t be placing these properties under contract – your job simply involves sniffing these properties out and letting the investor know what you’ve located.

Other than paying on time and what others said.......I keep my utilization under.....it's actually at 2% each month......the credit mix is important.....installment and revolving......I have a lot of revolving but my installment credit is what ive been working on.......I have a pledge loan with navy federal......I paid 85% off immediately......and am walking down the balance slowly....check out velocity banking too.....

The velocity of money has nothing to do with the use of capital or your opportunity costs, use of funds, what else would you do with the money, from that you can see if paying down the debt is the better choice. :)

That is a long term economic shot in the arm that carries a higher velocity of money in a community long term, taxes, etc.